BP 2Q Earnings Beat Estimates as Debt Continues to Climb

BP is facing financial challenges due to ongoing Macondo payments, which differentiate it from other European oil majors. Despite generating some cash, BP's net debt has increased significantly, raising concerns about its financial stability. The Macondo oil spill continues to impact BP's financials, with net debt rising from $30 billion to almost $40 billion. Investors are keen to see improvements in cash flow and debt management to align BP's capital structure with industry standards.

What is one of the main financial challenges BP is facing according to the first section?

• Increased competition

• Low oil prices

• Macondo payments

• High operational costs

What is the target net gearing limit set by BP's management?

• 35%

• 30%

• 28%

• 25%

How much did BP's net debt increase over the past year as mentioned in the second section?

• $15 billion

• $20 billion

• $10 billion

• $5 billion

What financial strategy is BP focusing on to improve its cash flow in the second half of the year?

• Increasing oil production

• Reducing operational costs

• Capping net debt

• Expanding into new markets

Why is it important for BP to align its capital structure with the rest of the industry?

• To increase market share

• To avoid valuation mismatches

• To attract more investors

• To reduce operational risks